Declining Interest Rates and Rising Personal Loan are Fueling the Global Loan Market Growth
Ease in affordability of loan
approval, growing preference for purchasing a product through a loan, and
increasing issues of limited savings are the leading factors driving the global
loan market during the forecast period.
According to TechSci Research report, “Loan Market – Global
Industry Size, Share, Trends, Competition, Opportunity, and Forecast, 2018-2028F,”
the
global Loan market is expected to project robust growth in the forecast period
as loans are considered a more convenient and flexible option. Moreover, fast
funding time, availability of loan providers, and a defined loan repayment
tenure are certain crucial factors influencing the loan market..
Loans are broadly categorized
into secured or unsecured loans. Loans that are backed by collateral, such
as mortgages and auto loans, are referred to as secured loans. In these
situations, the asset used to secure the loan serves as collateral. For example, the home serves is
collateral for a mortgage while a car serves as collateral for a car loan. For
other types of secured loans, borrowers may be required to provide additional
forms of collateral.
Credit cards and signature loans are
secured loans, in contrast. This indicates that they lack any form of
collateral backing. Due to the higher default risk compared to secured loans,
unsecured loans typically have higher interest rates. i-If the borrower defaults on a secured loan,
the lender may seize the collateral. Unsecured loan rates frequently change
dramatically depending on a number of variables, including the borrower's
credit history.
After the extraordinary
government stimulus during the COVID-19 pandemic dampened businesses' and
consumers' appetite for bank borrowing, analysts and investors have been
closely monitoring loan growth, which is a key driver of bank income. Loan
demand started to increase in the first quarter as the economy recovered from
the pandemic, driven by consumer spending and businesses building up
inventories.
Loan demand started to
increase in the first quarter as the economy recovered from the pandemic,
driven by consumer spending and businesses building up inventories. Despite
aggressive US Federal Reserve interest rate increases igniting recession fears,
that trend persisted during the second quarter. Two of the largest US lenders,
JPMorgan Chase & Co., and Wells Fargo & Co., reported that there were
few indications of deteriorating credit quality as their loan books increased
in the second quarter by 7% and 8.4%, respectively, compared to the year 2021.
Browse over XX market data Figures
spread through XX Pages and an in-depth TOC on the "Loan Market"
The
global loan market is segmented based on type, provider type, interest rate,
tenure period, region, and competitional landscape. Based on type, the market
is further fragmented into Housing Loan, Mortgage Loan, Personal Loan, Auto
Loan, Business Loan, Home Improvement, Others (Gold Loan, Education Loan,
Agriculture Loan, Retail Loan, etc.). Based on Provider Type, the market is
categorized into (Bank, Non-Banking Financial Companies, and Others (Fintech
Companies, etc.). Based on Interest Rate, the market is segmented into Fixed and
Floating. Based on Tenure Period, the market is segmented into Less than 5
years, 5 years to 10 Years, 11 years to 20 years, more than 20 Years. The
market analysis also studies the regional segmentation, which is divided among
North America, Europe, Asia-Pacific, Middle East & Africa, and South
America.
Among type, the personal loan category
is the most developed market for Loan, which commands a significant market
share as numerous people have been using personal loans to meet a variety of
needs, including big-ticket purchases, daily expenses, and medical emergencies.
Personal loans are consistently the most popular option among borrowers for
overcoming a financial crisis. Because of this, there is consistently high
demand for personal loans, which is anticipated to spur growth.
Key market players in the global loan market
include:
- Bank of America
Corporation
- JPMorgan Chase & Co.
- Citigroup, Inc.
- Wells Fargo & Co.
- U.S. Bancorp
- PNC Financial Service
Group, Inc.
- American Express Company
- Ally Financial Inc.
- Truist Financial
Corporation
- Bank of China
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The North America region is a prominent
leader within the loan market across the globe., With the significant numbers
of financial and non-financial institutions, it plays a crucial role in the
loan industry. Moreover, the increased
cooperation between banks and marketplace lenders has already been seen in the
U.S. These collaborations will help gain scale, raise investor and borrower
awareness, andeven cut customer acquisition costs.
"The loan industry is rapidly
expanding and changing is marketplace, which involves the support of new
businesses and technologies, individual borrowers and savers, and institutional
investors. Following rapid development in markets like the U.K., US., and
China, lenders have recently gained prominence. In addition, there are a number
of factors within Asia Pacific region that are anticipated to fuel its ranking
as the fastest growing as the region's
fast-paced economic development, its sizable but underbanked population, and
regulatory and governmental support for inclusive financial development.” said
Mr. Karan Chechi, Research Director with TechSci Research, a research based
global management consulting firm.
“Loan Market – Global Industry Size, Share, Trends, Opportunity,
and Forecast, 2018-2028F Segmented By Type
(Housing Loan, Mortgage Loan, Personal Loan, Auto Loan,
Business Loan, Home Improvement Loan, Others (Gold Loan, Education Loan,
Agriculture Loan, Retail Loan, etc.), By Provider Type (Bank, Non-Banking
Financial Companies, and Others (Fintech Companies, etc.), By Interest Rate (Fixed
and Floating), By Tenure Period (Less than 5 years, 5 years to 10 Years, 11
years to 20 years, More than 20 Years), By Region”has
evaluated the future growth potential of global loan market and provides statistics and information on market
structure, size, share, and future growth. The report is intended to provide
cutting-edge market intelligence and help decision-makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges and opportunities present in loan market
globally.
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